Professional Development: Strategic Planning in Modern Organizations

This report provides an in-depth analysis of how strategic planning impacts modern organizations. It explores the conventional strategic planning process and the OTIC model (Organization-Team-Individual-Change), examining how organizations benefit from strategic planning and which ones may not. The report identifies key participants in the strategic planning process at different organizational levels, emphasizing the role of leadership and employee engagement. Furthermore, it discusses how strategic planning fits into the contemporary business environment, considering factors such as technological advancements and the need for adaptability. The report concludes that strategic planning is vital for organizational success, particularly in fostering change and adapting to a dynamic external environment, though it acknowledges that its applicability may vary depending on the industry, with tourism-based organizations being mentioned as an example. The analysis underscores the importance of continuous evaluation and adaptation of strategic plans to ensure they remain relevant and effective.

Running head: PROFESSIONAL DEVELOPMENT OF MANAGERS
PROFESSIONAL DEVELOPMENT OF MANAGERS
Name of the Student
Name of the University
Author Note

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Executive Summary
The report is based on the analysis of the ways by which strategic planning is able to affect
the modern organizations. The process of conventional strategic model has been analysed
along with the OTIC model. The organizations that are able to benefit by the strategic
planning have been analysed in the report along with those which do not get benefits from
this process. The people who are able to participate in the process are also examined in the
report. The ways by which strategic planning is able to fit in modern business environment is
also a major part of the analysis which has been made in the report.

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Table of Contents
Introduction....................................................................................................................3
The organizations that benefit from the methodology and which organizations don’t..3
The people who participate in the process and the at which levels...............................5
Ways by which the methodology fits general business climate.....................................7
Conclusion......................................................................................................................8
References....................................................................................................................10

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Introduction
The strategic planning based process is able to play a major role in the ways by which
modern organizations operate in the business environment in an effective manner. Strategic
planning is thereby able to affect the ways by which the long term strategies are developed by
the management in order to increase their levels of profitability and revenues. The OTIC
model can be linked with the conventional strategic planning based process that is
implemented by the companies. The OTIC model is the acronym for Organization-Team-
Individual-Change (Baumgartner & Rauter, 2017). The connection which can be established
between the different levels of the organizations are mainly addressed by the OTIC model.
The report will be based on the analysis of the ways by which organizations are able
to receive benefits from the process of conventional strategic planning. The organizations that
are not able to receive effective levels of benefits from strategic planning process will also be
analysed in the report.
The organizations that benefit from the methodology and which organizations don’t
Strategic planning can be defined as the guide or the plan which is created in order to
map the goals and reach them as well. The plan is also able to serve as a management based
tool which is used for the purpose of solving problems, development of products, preparation
of the business plans. The major goal of the plan to integrate different activities of the
business within a system which supportive in nature. The different components that are
considered to be a part of the strategic planning process include, the vision statement, mission
statement, statement of the corporate values, corporate weaknesses and corporate strengths
and long term goals and the short term objectives (Bergh et al., 2016). These components of
the strategic planning model are helpful in the proper development of effective strategies in
order to develop the effective processes.

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Vision of an organization is based on the development of a clear picture which is
based on its operations in the industry. The mission statement on the other hand is able to
depict the business environment in which the company operates. The beliefs and principles of
the company are developed within the value statement of strategic planning model. The
analysis of the strengths and the weaknesses is also an important part of the strategic plan that
is developed by the organization. The strategic plan is finally able to develop the long term
goals and short term objectives of the organization (Chen et al., 2015). The objectives that are
thereby developed with the help of conventional strategic planning need to be SMART in
nature. SMART is used as an acronym for S-smart, M-measurable, A-achievable, R-realistic
and T-time-based.
The organizations are able to benefit from the process of conventional strategic
planning and develop strategies that are highly effective in nature. The strategic plans are
thereby developed in order to form the long term based strategies and the short term
objectives. For example, Apple is an organization which uses the process of strategic
planning in order to operate in the environment in a profitable manner. Apple was established
in the year 1976 in a garage in California. The company has been able to develop its position
in the technology industry with the help of innovative products (Cook et al., 2014). The
organization has been able to make innovation in the products in order to maintain its
position in the industry. Strategic planning has been able to play a major role in the
development of long term and short term strategies for organizational development
(Apple.com., 2018). The industry and the internal environment of the company has been
analysed effectively in order to develop strategies that can be helpful for the future operations
of Apple (Dibrell, Craig & Neubaum, 2014).
Some organizations however believe that conventional strategic planning is not useful
for the operations and the development of effective strategies. The organizations which

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operate in the tourism based industry are mainly those which do not find the process quite
useful for their operations and strategy development based process. The changes that take
place in the external environment are quite fast and this is able to affect the operations of the
company (Friedmann, 2017). The development of long term strategies is thereby not useful
for the revenues and profitability of the tourism based organizations.
The people who participate in the process and the at which levels
The most important part of the strategic planning process is related to the effective
determination of people who are involved within the process. The process of strategic
planning is however divided into several parts in which different levels of employees are
involved. The CEO or the chief executive officer of the company can be considered to be
most important person who is engaged in the strategic planning. The CEO thereby needs to
develop a team in order to perform different jobs within the strategic plan. The top level
members of the organization are thereby involved in the strategic plans that are developed
(Hill, Jones & Schilling, 2014).
The CEO has the authority to develop a team and decide the steps that need to be
taken in the strategic plans. The leaders or the CEOs who are able to develop the teams
effectively get maximum amount of benefits from the strategic plans. The process however
does not stop after involving the members of the top management. The entire organization
and the employees are thereby involved in the process of strategic planning. The different
types of employees are involved in the strategic plan based on the stages of the plan (Horkoff
et al., 2014). People who are engaged in the strategic planning in an active manner are the
following,
 Governors
 Chair of governing body

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 CEO
 Members who belong to the planning team of the CEO
 Managers
 Executive staff
 Operators
 Facilitators
 Assistants and advisors
 Consultants
 Interest Groups
 Beneficiaries
The levels of engagement and communication among different levels of employees
can be managed effectively with the help of OTIC model. The interaction levels between the
individuals and the teams are thereby managed with the help of proper implementation of this
model (Weigand et al., 2014).
Figure 1 – Process of engaging people in strategic planning
Source – (West, Ford & Ibrahim, 2015)

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Figure 2 – Process of the engagement of people in strategic planning
Source - (West, Ford & Ibrahim, 2015)
Ways by which the methodology fits general business climate
The process of conventional strategic planning has proved to be useful for the
companies which operate in the modern business environment in 21st century. The
organizations are thereby able to develop effective strategies which can help in the long term
as well as the short term operations in the industry. The proper analysis of the factors that are

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a part of ever-changing technology based industry is considered to be important for the
proper operations of the modern organizations. The interaction between the individuals
within the organizations and the teams have also increased due to the implementation of
effective strategic planning based process (Wolf & Floyd, 2017).
The strategic plan of the business is thereby useful for the proper development of
strategies which can be used for the future operations. The internal environment and external
environment of the companies is also analysed in the plan in order to develop approaches
according to the needs and environment of operations. However, in the highly competitive
business environment the proper analysis of the external factors is important for development
of strategies that can be highly effective. The plans need to be updated on a periodic basis in
order to analyse the factors that are able to affect the organizational operations in a huge
manner. Some of the organizations however do not feel that strategic planning can be
effective for operations in the business based environment (Horkoff et al., 2014).
The process is however considered to be highly effective in nature for the
organizations which need to be develop strategies for their long term operations within the
industry. The process of strategic planning is also quite effective in bringing changes within
the organizational operations. The analysis of the environment is thereby able to play a major
role in the ways by which change based strategies are developed for the effective
organizational operations (Dibrell, Craig & Neubaum, 2014).
Conclusion
The analysis in report can be concluded by stating that strategic planning process can
play a major role in the effective operations of the modern organizations. The changes that
take place in the external environment of the organizations are able to affect their operations
in a huge manner. The companies can implement the process of strategic planning in order to

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operate in the environment effectively. Strategic planning is however not considered to be
effective for some of the organizations which operate in the tourism based sector. The
development of long term strategies is thereby not highly significant for the organizations.
The change process of different organizations is also based on the conventional strategic
planning.

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References
Apple.com. (2018). Apple. Retrieved from https://www.apple.com/
Baumgartner, R. J., & Rauter, R. (2017). Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner
Production, 140, 81-92.
Bergh, D. D., Aguinis, H., Heavey, C., Ketchen, D. J., Boyd, B. K., Su, P., ... & Joo, H.
(2016). Using meta‐analytic structural equation modeling to advance strategic
management research: Guidelines and an empirical illustration via the strategic
leadership‐performance relationship. Strategic Management Journal, 37(3), 477-497.
Chen, Y., Tang, G., Jin, J., Li, J., & Paillé, P. (2015). Linking market orientation and
environmental performance: The influence of environmental strategy, employee’s
environmental involvement, and environmental product quality. Journal of Business
Ethics, 127(2), 479-500.
Cook, C. N., Inayatullah, S., Burgman, M. A., Sutherland, W. J., & Wintle, B. A. (2014).
Strategic foresight: how planning for the unpredictable can improve environmental
decision-making. Trends in ecology & evolution, 29(9), 531-541.
Dibrell, C., Craig, J. B., & Neubaum, D. O. (2014). Linking the formal strategic planning
process, planning flexibility, and innovativeness to firm performance. Journal of
Business Research, 67(9), 2000-2007.
Friedmann, J. (2017). Two centuries of planning theory: An overview. In Explorations in
planning theory (pp. 10-29). Routledge.

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Hill, C.W., Jones, G.R. & Schilling, M.A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Horkoff, J., Barone, D., Jiang, L., Yu, E., Amyot, D., Borgida, A., & Mylopoulos, J. (2014).
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Modeling, 13(3), 1015-1041.
Weigand, K., Flanagan, T., Dye, K., & Jones, P. (2014). Collaborative foresight:
Complementing long-horizon strategic planning. Technological Forecasting and
Social Change, 85, 134-152.
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive
advantage. Oxford University Press, USA.
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven
agenda. Journal of Management, 43(6), 1754-1788.